A bushel of potatoes that formerly sold for a dollar now sells at two dollars. A farmer who has mortgaged his farm for $1,000 and who relies upon his sales of potatoes to pay off his debt is highly benefited by the change, while the creditor is correspondingly harmed. The debtor is obliged to raise only half as many potatoes; the creditor receives money that buys half the commodities that could have been purchased with his money at the time of the loan.

On the other hand, suppose the number of pieces of money is instantly halved and all other factors continue unchanged. There is now twice as great a demand for each piece, it becomes more desirable and will purchase more goods. Prices, that is to say, go down. Dollar potatoes now sell for fifty cents. The debtor farmer must grow twice as many potatoes as he had contemplated; the creditor finds that he receives money that has doubled in purchasing power.

It has already been said that the quarter century after the war was, in the main, a period of falling prices. The farmer found the size of his mortgage, as measured in bushels of wheat and potatoes, growing steadily and relentlessly greater. The creditor received a return which purchased larger and larger quantities of commodities. The debtor class was mainly in the West; the creditors, mainly in the East. The westerners desired a larger quantity of money which would, as they believed, send prices upward; the East, depending upon similar reasoning, desired a contraction in supply. The former were called inflationists; the latter, contractionists. Much of the monetary history of the country after the Civil War was concerned with the attempt of the inflationists to expand the supply of currency, and the contractionists to prevent inflation.

The intellectual background of the twenty-five years after the war, so far as it can be considered at this point, was to be found mainly in the development of education and the growth of the newspaper and periodical. Before the Civil War, except in the South, the old-time district school had given way, in most states, to graded elementary schools, supported by taxation. After the war the southern states made heroic efforts to revive education, in which they were aided by such northern benefactions as the Peabody Educational Fund of $2,000,000 established in 1867. In the northern states the schools were greatly improved, free text-books became the rule, the free public high-schools replaced the former private academies, and normal schools for the training of teachers were established. The period was also marked by the foundation of scores of colleges and especially of the great state universities. The Morrill Act of July 2, 1862, had provided for a grant to each state of 30,000 acres of public land for every senator and representative in Congress to which the state was entitled. The land was to be used to promote education in the agricultural and mechanic arts, and in the natural sciences. The advantages of the law were quickly seen, and between 1865 and 1890 seventeen state universities were started, most of them in the Middle and Far West. Many of these underwent a phenomenal growth and had a great influence on the states in which they were established.

The newspaper press was also undergoing a transformation in the quarter century after the war. The great expansion of the numbers and influence of American newspapers before and during that struggle had been due to the ability of individuals. James Gordon Bennett had founded the New York Herald, for example, in 1835, and from then on the Herald had been "Bennett's paper." Similarly the Tribune had represented Horace Greeley and the Times, Henry J. Raymond. The effect of the war was to develop technical resources in gathering news, to necessitate a larger scale of expenditure and a wider range of information, and to make a given issue the work of many men instead of one. Raymond died in 1869, Greeley and Bennett in 1872; and although the Sun was the embodiment of Charles A. Dana until his death in 1897, the Nation and the Evening Post of Edwin L. Godkin until 1899, nevertheless the tendency was away from the newspaper which reflected an individual and toward that which represented a group; away from the editorial which expressed the views of a well-known writer, to the editorial page which combined the labors of many anonymous contributors. The financial basis of the newspaper also underwent a transition. As advertising became more and more general, the revenues of newspapers tended to depend more on the favor of the advertiser than upon the subscriber, giving the former a powerful although indirect influence on editorial policies.

The influence of the press in politics was rapidly growing. A larger number of newspapers became sufficiently independent to attack abuses in both parties. The New York Times and Thomas Nast's cartoons in Harper's Weekly were most important factors in the overthrow of the Tweed Ring in New York City, and in the elections of 1884 and later, newspapers exerted an unusual power. Press associations in New York and the West led the way to the Associated Press, with its wide-spread cooperative resources for gathering news.

As important as the character of the press, was the amount and distribution of its circulation. Between 1870 and 1890 the number of newspapers published and the aggregate circulation increased almost exactly threefold—about five times as fast as the population was growing. In the latter year the entire circulation for the country was over four and a half billion copies, of which about sixty per cent. were dailies. So great had been the growth of the press during the seventies that the census authorities in 1880 made a careful study of the statistical aspects of the subject. It appeared from this search that newspapers were published in 2,073 of the 2,605 counties in the Union. Without some such means of spreading information, it would have been impossible to conduct the great presidential campaigns, in which the entire country was educated in the tariff and other important issues.

The expansion of the press is well exemplified by the use of the telegraph in the spread of information. When Lincoln was nominated for the presidency in 1860, a single telegraph operator was able to send out all the press matter supplied to him. In 1892 at the Democratic convention, the Western Union Telegraph Company had one hundred operators in the hall. Mechanical invention, meanwhile, was able to keep pace with the demand for news. The first Hoe press of 1847 had been so improved by 1871 that it printed ten to twelve thousand eight-page papers in an hour, and twenty-five years later the capacity had been increased between six and sevenfold.

BIBLIOGRAPHICAL NOTE

Nearly all material on party history is so partisan that it should be read with critical scepticism: Francis Curtis, The Republican Party, 1854-1904 (2 vols., 1904); J.D. Long, Republican Party (1888); for the Independent attitude, consult Harper's Weekly during the campaign of 1884. As the Republicans were in power most of the time from 1865-1913, there is more biographical and autobiographical material about Republicans than about Democratic leaders. Local studies of political conditions and the social structure of the parties are almost entirely lacking. On the personal side, the following are essential: G.F. Parker, Writings and Speeches of Grover Cleveland (1892); T.E. Burton, John Sherman (1906); J.B. Foraker, Notes of a Busy Life (2 vols., 1916), throws light on the ideals and practices of a politician; G.F. Hoar, Autobiography of Seventy Years (2 vols., 1903), gives the New England Republican point of view; Rollo Ogden, Life and Letters of E.L. Godkin (2 vols., 1907); G.F. Parker, Recollections of Grover Cleveland (1909), is useful, but sketchy, there being as yet no thorough biography of Cleveland; T.C. Platt, Autobiography (1910), interestingly portrays the philosophy of a machine politician, but should be read with care; John Sherman, Recollections of Forty Years in House, Senate and Cabinet (2 vols., 1895); Edward Stanwood, James G. Blaine (1905), is highly favorable to Blaine; W.M. Stewart, Reminiscences (1908), is interesting, partisan and unreliable. For a general estimate of the autobiographical material of the period, consult History Teachers' Magazine (later the Historical Outlook), "Recent American History Through the Actors' Eyes," March, 1916.